======================================================================================

Udacity - Data Analyst ND Term-2 Project-2, Feb & Mar 2019

Purpose: Produce a simple linear model to predict the likelyhood of a
potential loan by the Prosper Loan Company becoming delinquent.


Notes from: 9/03/05/15:00

For Final Plots and time permitting those above


## [1] "Wed Mar  6 23:19:31 2019"

Install packages & libraries.

Load data

Data Summary

The raw data has 113,937 rows and 81 columns. It contians information on each
loan made by the Prosper Company of San Fransico from Q4-2005 unitl Q1-2014.

## [1] 113937     81

Input data provides specific information about: loan amount, borrower rate
(or interest rate), borrower APR, current loan status, borrower income, borrower
employment status and duration, borrower credit history, and the latest payment information.

##                    ListingKey     ListingNumber    
##  17A93590655669644DB4C06:     6   Min.   :      4  
##  349D3587495831350F0F648:     4   1st Qu.: 400919  
##  47C1359638497431975670B:     4   Median : 600554  
##  8474358854651984137201C:     4   Mean   : 627886  
##  DE8535960513435199406CE:     4   3rd Qu.: 892634  
##  04C13599434217079754AEE:     3   Max.   :1255725  
##  (Other)                :113912                    
##                     ListingCreationDate  CreditGrade         Term      
##  2013-10-02 17:20:16.550000000:     6          :84984   Min.   :12.00  
##  2013-08-28 20:31:41.107000000:     4   C      : 5649   1st Qu.:36.00  
##  2013-09-08 09:27:44.853000000:     4   D      : 5153   Median :36.00  
##  2013-12-06 05:43:13.830000000:     4   B      : 4389   Mean   :40.83  
##  2013-12-06 11:44:58.283000000:     4   AA     : 3509   3rd Qu.:36.00  
##  2013-08-21 07:25:22.360000000:     3   HR     : 3508   Max.   :60.00  
##  (Other)                      :113912   (Other): 6745                  
##                  LoanStatus                  ClosedDate   
##  Current              :56576                      :58848  
##  Completed            :38074   2014-03-04 00:00:00:  105  
##  Chargedoff           :11992   2014-02-19 00:00:00:  100  
##  Defaulted            : 5018   2014-02-11 00:00:00:   92  
##  Past Due (1-15 days) :  806   2012-10-30 00:00:00:   81  
##  Past Due (31-60 days):  363   2013-02-26 00:00:00:   78  
##  (Other)              : 1108   (Other)            :54633  
##   BorrowerAPR       BorrowerRate     LenderYield     
##  Min.   :0.00653   Min.   :0.0000   Min.   :-0.0100  
##  1st Qu.:0.15629   1st Qu.:0.1340   1st Qu.: 0.1242  
##  Median :0.20976   Median :0.1840   Median : 0.1730  
##  Mean   :0.21883   Mean   :0.1928   Mean   : 0.1827  
##  3rd Qu.:0.28381   3rd Qu.:0.2500   3rd Qu.: 0.2400  
##  Max.   :0.51229   Max.   :0.4975   Max.   : 0.4925  
##  NA's   :25                                          
##  EstimatedEffectiveYield EstimatedLoss   EstimatedReturn 
##  Min.   :-0.183          Min.   :0.005   Min.   :-0.183  
##  1st Qu.: 0.116          1st Qu.:0.042   1st Qu.: 0.074  
##  Median : 0.162          Median :0.072   Median : 0.092  
##  Mean   : 0.169          Mean   :0.080   Mean   : 0.096  
##  3rd Qu.: 0.224          3rd Qu.:0.112   3rd Qu.: 0.117  
##  Max.   : 0.320          Max.   :0.366   Max.   : 0.284  
##  NA's   :29084           NA's   :29084   NA's   :29084   
##  ProsperRating..numeric. ProsperRating..Alpha.  ProsperScore  
##  Min.   :1.000                  :29084         Min.   : 1.00  
##  1st Qu.:3.000           C      :18345         1st Qu.: 4.00  
##  Median :4.000           B      :15581         Median : 6.00  
##  Mean   :4.072           A      :14551         Mean   : 5.95  
##  3rd Qu.:5.000           D      :14274         3rd Qu.: 8.00  
##  Max.   :7.000           E      : 9795         Max.   :11.00  
##  NA's   :29084           (Other):12307         NA's   :29084  
##  ListingCategory..numeric. BorrowerState  
##  Min.   : 0.000            CA     :14717  
##  1st Qu.: 1.000            TX     : 6842  
##  Median : 1.000            NY     : 6729  
##  Mean   : 2.774            FL     : 6720  
##  3rd Qu.: 3.000            IL     : 5921  
##  Max.   :20.000                   : 5515  
##                            (Other):67493  
##                     Occupation         EmploymentStatus
##  Other                   :28617   Employed     :67322  
##  Professional            :13628   Full-time    :26355  
##  Computer Programmer     : 4478   Self-employed: 6134  
##  Executive               : 4311   Not available: 5347  
##  Teacher                 : 3759   Other        : 3806  
##  Administrative Assistant: 3688                : 2255  
##  (Other)                 :55456   (Other)      : 2718  
##  EmploymentStatusDuration IsBorrowerHomeowner CurrentlyInGroup
##  Min.   :  0.00           False:56459         False:101218    
##  1st Qu.: 26.00           True :57478         True : 12719    
##  Median : 67.00                                               
##  Mean   : 96.07                                               
##  3rd Qu.:137.00                                               
##  Max.   :755.00                                               
##  NA's   :7625                                                 
##                     GroupKey                 DateCreditPulled 
##                         :100596   2013-12-23 09:38:12:     6  
##  783C3371218786870A73D20:  1140   2013-11-21 09:09:41:     4  
##  3D4D3366260257624AB272D:   916   2013-12-06 05:43:16:     4  
##  6A3B336601725506917317E:   698   2014-01-14 20:17:49:     4  
##  FEF83377364176536637E50:   611   2014-02-09 12:14:41:     4  
##  C9643379247860156A00EC0:   342   2013-09-27 22:04:54:     3  
##  (Other)                :  9634   (Other)            :113912  
##  CreditScoreRangeLower CreditScoreRangeUpper
##  Min.   :  0.0         Min.   : 19.0        
##  1st Qu.:660.0         1st Qu.:679.0        
##  Median :680.0         Median :699.0        
##  Mean   :685.6         Mean   :704.6        
##  3rd Qu.:720.0         3rd Qu.:739.0        
##  Max.   :880.0         Max.   :899.0        
##  NA's   :591           NA's   :591          
##         FirstRecordedCreditLine CurrentCreditLines OpenCreditLines
##                     :   697     Min.   : 0.00      Min.   : 0.00  
##  1993-12-01 00:00:00:   185     1st Qu.: 7.00      1st Qu.: 6.00  
##  1994-11-01 00:00:00:   178     Median :10.00      Median : 9.00  
##  1995-11-01 00:00:00:   168     Mean   :10.32      Mean   : 9.26  
##  1990-04-01 00:00:00:   161     3rd Qu.:13.00      3rd Qu.:12.00  
##  1995-03-01 00:00:00:   159     Max.   :59.00      Max.   :54.00  
##  (Other)            :112389     NA's   :7604       NA's   :7604   
##  TotalCreditLinespast7years OpenRevolvingAccounts
##  Min.   :  2.00             Min.   : 0.00        
##  1st Qu.: 17.00             1st Qu.: 4.00        
##  Median : 25.00             Median : 6.00        
##  Mean   : 26.75             Mean   : 6.97        
##  3rd Qu.: 35.00             3rd Qu.: 9.00        
##  Max.   :136.00             Max.   :51.00        
##  NA's   :697                                     
##  OpenRevolvingMonthlyPayment InquiriesLast6Months TotalInquiries   
##  Min.   :    0.0             Min.   :  0.000      Min.   :  0.000  
##  1st Qu.:  114.0             1st Qu.:  0.000      1st Qu.:  2.000  
##  Median :  271.0             Median :  1.000      Median :  4.000  
##  Mean   :  398.3             Mean   :  1.435      Mean   :  5.584  
##  3rd Qu.:  525.0             3rd Qu.:  2.000      3rd Qu.:  7.000  
##  Max.   :14985.0             Max.   :105.000      Max.   :379.000  
##                              NA's   :697          NA's   :1159     
##  CurrentDelinquencies AmountDelinquent   DelinquenciesLast7Years
##  Min.   : 0.0000      Min.   :     0.0   Min.   : 0.000         
##  1st Qu.: 0.0000      1st Qu.:     0.0   1st Qu.: 0.000         
##  Median : 0.0000      Median :     0.0   Median : 0.000         
##  Mean   : 0.5921      Mean   :   984.5   Mean   : 4.155         
##  3rd Qu.: 0.0000      3rd Qu.:     0.0   3rd Qu.: 3.000         
##  Max.   :83.0000      Max.   :463881.0   Max.   :99.000         
##  NA's   :697          NA's   :7622       NA's   :990            
##  PublicRecordsLast10Years PublicRecordsLast12Months RevolvingCreditBalance
##  Min.   : 0.0000          Min.   : 0.000            Min.   :      0       
##  1st Qu.: 0.0000          1st Qu.: 0.000            1st Qu.:   3121       
##  Median : 0.0000          Median : 0.000            Median :   8549       
##  Mean   : 0.3126          Mean   : 0.015            Mean   :  17599       
##  3rd Qu.: 0.0000          3rd Qu.: 0.000            3rd Qu.:  19521       
##  Max.   :38.0000          Max.   :20.000            Max.   :1435667       
##  NA's   :697              NA's   :7604              NA's   :7604          
##  BankcardUtilization AvailableBankcardCredit  TotalTrades    
##  Min.   :0.000       Min.   :     0          Min.   :  0.00  
##  1st Qu.:0.310       1st Qu.:   880          1st Qu.: 15.00  
##  Median :0.600       Median :  4100          Median : 22.00  
##  Mean   :0.561       Mean   : 11210          Mean   : 23.23  
##  3rd Qu.:0.840       3rd Qu.: 13180          3rd Qu.: 30.00  
##  Max.   :5.950       Max.   :646285          Max.   :126.00  
##  NA's   :7604        NA's   :7544            NA's   :7544    
##  TradesNeverDelinquent..percentage. TradesOpenedLast6Months
##  Min.   :0.000                      Min.   : 0.000         
##  1st Qu.:0.820                      1st Qu.: 0.000         
##  Median :0.940                      Median : 0.000         
##  Mean   :0.886                      Mean   : 0.802         
##  3rd Qu.:1.000                      3rd Qu.: 1.000         
##  Max.   :1.000                      Max.   :20.000         
##  NA's   :7544                       NA's   :7544           
##  DebtToIncomeRatio         IncomeRange    IncomeVerifiable
##  Min.   : 0.000    $25,000-49,999:32192   False:  8669    
##  1st Qu.: 0.140    $50,000-74,999:31050   True :105268    
##  Median : 0.220    $100,000+     :17337                   
##  Mean   : 0.276    $75,000-99,999:16916                   
##  3rd Qu.: 0.320    Not displayed : 7741                   
##  Max.   :10.010    $1-24,999     : 7274                   
##  NA's   :8554      (Other)       : 1427                   
##  StatedMonthlyIncome                    LoanKey       TotalProsperLoans
##  Min.   :      0     CB1B37030986463208432A1:     6   Min.   :0.00     
##  1st Qu.:   3200     2DEE3698211017519D7333F:     4   1st Qu.:1.00     
##  Median :   4667     9F4B37043517554537C364C:     4   Median :1.00     
##  Mean   :   5608     D895370150591392337ED6D:     4   Mean   :1.42     
##  3rd Qu.:   6825     E6FB37073953690388BC56D:     4   3rd Qu.:2.00     
##  Max.   :1750003     0D8F37036734373301ED419:     3   Max.   :8.00     
##                      (Other)                :113912   NA's   :91852    
##  TotalProsperPaymentsBilled OnTimeProsperPayments
##  Min.   :  0.00             Min.   :  0.00       
##  1st Qu.:  9.00             1st Qu.:  9.00       
##  Median : 16.00             Median : 15.00       
##  Mean   : 22.93             Mean   : 22.27       
##  3rd Qu.: 33.00             3rd Qu.: 32.00       
##  Max.   :141.00             Max.   :141.00       
##  NA's   :91852              NA's   :91852        
##  ProsperPaymentsLessThanOneMonthLate ProsperPaymentsOneMonthPlusLate
##  Min.   : 0.00                       Min.   : 0.00                  
##  1st Qu.: 0.00                       1st Qu.: 0.00                  
##  Median : 0.00                       Median : 0.00                  
##  Mean   : 0.61                       Mean   : 0.05                  
##  3rd Qu.: 0.00                       3rd Qu.: 0.00                  
##  Max.   :42.00                       Max.   :21.00                  
##  NA's   :91852                       NA's   :91852                  
##  ProsperPrincipalBorrowed ProsperPrincipalOutstanding
##  Min.   :    0            Min.   :    0              
##  1st Qu.: 3500            1st Qu.:    0              
##  Median : 6000            Median : 1627              
##  Mean   : 8472            Mean   : 2930              
##  3rd Qu.:11000            3rd Qu.: 4127              
##  Max.   :72499            Max.   :23451              
##  NA's   :91852            NA's   :91852              
##  ScorexChangeAtTimeOfListing LoanCurrentDaysDelinquent
##  Min.   :-209.00             Min.   :   0.0           
##  1st Qu.: -35.00             1st Qu.:   0.0           
##  Median :  -3.00             Median :   0.0           
##  Mean   :  -3.22             Mean   : 152.8           
##  3rd Qu.:  25.00             3rd Qu.:   0.0           
##  Max.   : 286.00             Max.   :2704.0           
##  NA's   :95009                                        
##  LoanFirstDefaultedCycleNumber LoanMonthsSinceOrigination   LoanNumber    
##  Min.   : 0.00                 Min.   :  0.0              Min.   :     1  
##  1st Qu.: 9.00                 1st Qu.:  6.0              1st Qu.: 37332  
##  Median :14.00                 Median : 21.0              Median : 68599  
##  Mean   :16.27                 Mean   : 31.9              Mean   : 69444  
##  3rd Qu.:22.00                 3rd Qu.: 65.0              3rd Qu.:101901  
##  Max.   :44.00                 Max.   :100.0              Max.   :136486  
##  NA's   :96985                                                            
##  LoanOriginalAmount          LoanOriginationDate LoanOriginationQuarter
##  Min.   : 1000      2014-01-22 00:00:00:   491   Q4 2013:14450         
##  1st Qu.: 4000      2013-11-13 00:00:00:   490   Q1 2014:12172         
##  Median : 6500      2014-02-19 00:00:00:   439   Q3 2013: 9180         
##  Mean   : 8337      2013-10-16 00:00:00:   434   Q2 2013: 7099         
##  3rd Qu.:12000      2014-01-28 00:00:00:   339   Q3 2012: 5632         
##  Max.   :35000      2013-09-24 00:00:00:   316   Q2 2012: 5061         
##                     (Other)            :111428   (Other):60343         
##                    MemberKey      MonthlyLoanPayment LP_CustomerPayments
##  63CA34120866140639431C9:     9   Min.   :   0.0     Min.   :   -2.35   
##  16083364744933457E57FB9:     8   1st Qu.: 131.6     1st Qu.: 1005.76   
##  3A2F3380477699707C81385:     8   Median : 217.7     Median : 2583.83   
##  4D9C3403302047712AD0CDD:     8   Mean   : 272.5     Mean   : 4183.08   
##  739C338135235294782AE75:     8   3rd Qu.: 371.6     3rd Qu.: 5548.40   
##  7E1733653050264822FAA3D:     8   Max.   :2251.5     Max.   :40702.39   
##  (Other)                :113888                                         
##  LP_CustomerPrincipalPayments LP_InterestandFees LP_ServiceFees   
##  Min.   :    0.0              Min.   :   -2.35   Min.   :-664.87  
##  1st Qu.:  500.9              1st Qu.:  274.87   1st Qu.: -73.18  
##  Median : 1587.5              Median :  700.84   Median : -34.44  
##  Mean   : 3105.5              Mean   : 1077.54   Mean   : -54.73  
##  3rd Qu.: 4000.0              3rd Qu.: 1458.54   3rd Qu.: -13.92  
##  Max.   :35000.0              Max.   :15617.03   Max.   :  32.06  
##                                                                   
##  LP_CollectionFees  LP_GrossPrincipalLoss LP_NetPrincipalLoss
##  Min.   :-9274.75   Min.   :  -94.2       Min.   : -954.5    
##  1st Qu.:    0.00   1st Qu.:    0.0       1st Qu.:    0.0    
##  Median :    0.00   Median :    0.0       Median :    0.0    
##  Mean   :  -14.24   Mean   :  700.4       Mean   :  681.4    
##  3rd Qu.:    0.00   3rd Qu.:    0.0       3rd Qu.:    0.0    
##  Max.   :    0.00   Max.   :25000.0       Max.   :25000.0    
##                                                              
##  LP_NonPrincipalRecoverypayments PercentFunded    Recommendations   
##  Min.   :    0.00                Min.   :0.7000   Min.   : 0.00000  
##  1st Qu.:    0.00                1st Qu.:1.0000   1st Qu.: 0.00000  
##  Median :    0.00                Median :1.0000   Median : 0.00000  
##  Mean   :   25.14                Mean   :0.9986   Mean   : 0.04803  
##  3rd Qu.:    0.00                3rd Qu.:1.0000   3rd Qu.: 0.00000  
##  Max.   :21117.90                Max.   :1.0125   Max.   :39.00000  
##                                                                     
##  InvestmentFromFriendsCount InvestmentFromFriendsAmount   Investors      
##  Min.   : 0.00000           Min.   :    0.00            Min.   :   1.00  
##  1st Qu.: 0.00000           1st Qu.:    0.00            1st Qu.:   2.00  
##  Median : 0.00000           Median :    0.00            Median :  44.00  
##  Mean   : 0.02346           Mean   :   16.55            Mean   :  80.48  
##  3rd Qu.: 0.00000           3rd Qu.:    0.00            3rd Qu.: 115.00  
##  Max.   :33.00000           Max.   :25000.00            Max.   :1189.00  
## 

Based on goals of this analysis 54 original columns are retained and the rest
were dropped. Where possible, column names will be shortened.

##  [1] "ListingCreationDate"     "CreditGrade"            
##  [3] "Term"                    "LoanStatus"             
##  [5] "ClosedDate"              "BorrowerAPR"            
##  [7] "BorrowerRate"            "RatingNumeric"          
##  [9] "RatingAlpha"             "ProsperScore"           
## [11] "LoanCategory"            "BorrowerState"          
## [13] "Occupation"              "EmploymentStatus"       
## [15] "EmploymentDuration"      "HomeMortgage"           
## [17] "DateCreditPulled"        "CreditScoreLower"       
## [19] "CreditScoreUpper"        "FirstCreditLineDate"    
## [21] "CurrentCreditLines"      "OpenCreditLines"        
## [23] "CreditLinesPast7yrs"     "RevolvingAccounts"      
## [25] "RevolvingMonthlyPayment" "InquiriesLast6Months"   
## [27] "TotalInquiries"          "CurrentDelinquencies"   
## [29] "AmountDelinquent"        "OverdueLast7Years"      
## [31] "RevolvingCreditBalance"  "BankcardUtilization"    
## [33] "AvailableBankcardCredit" "DebtToIncomeRatio"      
## [35] "IncomeRange"             "IncomeVerifiable"       
## [37] "StatedMonthlyIncome"     "TotalProsperLoans"      
## [39] "OnTimeProsperPayments"   "LatePayUnder30days"     
## [41] "LatePayOver30days"       "LoanDaysDelinquent"     
## [43] "InitialDefaultCycle"     "LoanDurationMonths"     
## [45] "LoanNumber"              "LoanOriginalAmount"     
## [47] "LoanOriginationDate"     "LoanOriginationQuarter" 
## [49] "MonthlyLoanPayment"      "PercentFunded"          
## [51] "Recommendations"         "InvestorsFriendsCount"  
## [53] "FriendsAmountInvested"   "Investors"










Univariate Plots Section

The table below is a six statistic summary of the ‘BorrrowerAPR’ column.

##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max.    NA's 
## 0.00653 0.15629 0.20976 0.21883 0.28381 0.51229      25

The following four barplots of the ‘BorrowerAPR’ column show frequency on the
y axis and Borrower’s APR on the x axis.

The first plot has a binwidth of 0.05. In the next three plots the binwidth was
gradually decreased. Smaller binwidths show the extent to which Prosper uses
fine increments in interest rates.

A high frequency of loans are made at a rate of roughly 0.365 percent however
this fact is not visibly apparent when the chosen binwidth is 0.05.

We can now see that there is a hidden spike in loan frequencies at the roughly
the 0.365 rate using a binwidth of 0.01 rather than 0.05.

By decreasing the binwidth even further we notice the incremental difference
interest rates being charged by the Prosper company doesn’t seem feasible.
My conclusion is that these interest rates are randomly generated by the
individual or individuals providing the data and that these are not true
interest rates being charged by banks because there are 6677 different rates
mostly with a difference of 0.00001 which is extremely unlikely. Had I not
explored using different binwidths I probably would not have discovered this.

The six statistic summary below of ‘BorrowersRate’ (interest rate) shows that
most interest rate are between 0.134 and 0.498 percent.

##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max. 
##  0.0000  0.1340  0.1840  0.1928  0.2500  0.4975

The plot of ‘BorrowerRate’ below using a binwidth of 0.001 increases the
granulartiy visible in the dispersion of interest rate values.

The next plot below displays the ‘BorrowerRate’ distribution as a density
for comparison to the bar plot above. This density curve shows the relative
percentage of total on the y axis rather than count as in the plot above.
The concentration of loans around the rate of 0.14 and the spike in frequency
at the 3.25 rate level are noticable.

The six statistic summary of ‘LoanTerm’ below indicates the median loan term
is 36 months a minimum of 12 months and a maximum of 60 months.

##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max. 
##   12.00   36.00   36.00   40.83   36.00   60.00

The histogram of ‘LoanTerm’ below identifies three loan term lengths
as either (12, 36, or 60) months, the most frequent being 36 months visually
repeating the results of the summary statistics above.

The table of the ‘BorrowerState’ below shows counts of loans made by each state.

## 
##          AK    AL    AR    AZ    CA    CO    CT    DC    DE    FL    GA 
##  5515   200  1679   855  1901 14717  2210  1627   382   300  6720  5008 
##    HI    IA    ID    IL    IN    KS    KY    LA    MA    MD    ME    MI 
##   409   186   599  5921  2078  1062   983   954  2242  2821   101  3593 
##    MN    MO    MS    MT    NC    ND    NE    NH    NJ    NM    NV    NY 
##  2318  2615   787   330  3084    52   674   551  3097   472  1090  6729 
##    OH    OK    OR    PA    RI    SC    SD    TN    TX    UT    VA    VT 
##  4197   971  1817  2972   435  1122   189  1737  6842   877  3278   207 
##    WA    WI    WV    WY 
##  3048  1842   391   150

The following barplot, shows the count of loans by state on the y axis and
the x axis lists each state. The first bar in the lower left of the graph shows
over 5 thousand borrowers had not indicated which state they were located in.
not provide the state information to the lender.

The following table of EmploymentStatus’ gives counts for each employment group.

##                    Employed     Full-time Not available  Not employed 
##          2255         67322         26355          5347           835 
##         Other     Part-time       Retired Self-employed 
##          3806          1088           795          6134

The following barchart helps visualize the counts of the different employment
groups Prosper is making loans to.

Columns 1,4 & 6 contain 11,408 loans without a without a clearly defined
employment type. Perhaps these loans weren’t made to individuals but to some
kind of business or organization.

The table below of ‘HomeMortgage’, tells us the number of borrowers who have a
home mortgage and the number of those who don’t have one. Its clear from these
counts that Prosper makes loans to both those with and without a home mortgage
in about the same frequency.

## False  True 
## 56459 57478

The following table on ‘IncomeRange’ shows the counts borrowers in each grouping.
Two of the values don’t represent income ranges which account for 8,547 loans.
The order of the columns are not in an sensible order like increasing from left
to right.

##             $0      $1-24,999      $100,000+ $25,000-49,999 $50,000-74,999 
##            621           7274          17337          32192          31050 
## $75,000-99,999  Not displayed   Not employed 
##          16916           7741            806

In the following barplot of ‘IncomeRange’ plots the same information in the
above table. This will be changed in the plot following the one below.

After converting the ‘IncomeRange’ variable into an ordered factor we re-plot it
to create a more accurate visualization of the actual income distribution for the
rows containing valid income ranges.

The table below divides ‘IncomeVerifiable’ into the counts of yes and no values. no.

##  False   True 
##   8669 105268

The barplot ‘IncomeVerifiable’ below, shows the same difference in yes and no
counts visually. A visual comparison seems to provide a more meaningful message.

The following table of ‘LoanOrigainationQuarter’, is an un-ordered count of
loans made by Prosper company druing each quarter.

## 
##    Q1    Q2    Q3    Q4 
## 29678 24906 27967 31386

The following plots shows the count of loans made by Prosper each quarter.

The table below provides the number of loans originated by year.

## 
##  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014 
##    22  5906 11460 11552  2047  5652 11228 19553 34345 12172

The following barplot of “OriginationYear” display counts of loans originated
yearly by the Prosper.

Added a new column called ‘LoanCode’ to the data frame uni_data that correctly
renames the the loan category values that are currently integers with a human
readable value using a string.

After producing a summary table of the ‘LoanCategory’ I changed the data type
of ‘LoanCategory’ from integer to factor creating a different table showing the
counts for each loan category.

##      Not Available Debt Consolidation   Home Improvement 
##              16965              58308               7433 
##           Business      Personal Loan        Student Use 
##               7189               2395                756 
##               Auto              Other      Baby Adoption 
##               2572              10494                199 
##               Boat Cosmetic Procedure    Engagement Ring 
##                 85                 91                217 
##        Green Loans Household Expenses    Large Purchases 
##                 59               1996                876 
##   Medical / Dental         Motorcycle                 RV 
##               1522                304                 52 
##             Taxes            Vacation      Wedding Loans 
##                885                768                771

The bar plot below shows the ‘LoanCode’ counts of 20 categories of loans
the Prosper company makes, consolidation loans being the most frequent.

The table below summarizes the counts of the eight credit grades.

##           A    AA     B     C     D     E    HR    NC 
## 84984  3315  3509  4389  5649  5153  3289  3508   141

The bar plot below displays the eight ‘CreditGrades’ distribution that includes
a group of 80K unclassified loan grades. These credit grades only apply to loans
prior to the year 2009 and therefore this variable is not consistant across the
data set and should be used with caution in any calculations.

##              Cancelled             Chargedoff              Completed 
##                      5                  11992                  38074 
##                Current              Defaulted FinalPaymentInProgress 
##                  56576                   5018                    205 
##   Past Due (>120 days)   Past Due (1-15 days)  Past Due (16-30 days) 
##                     16                    806                    265 
##  Past Due (31-60 days)  Past Due (61-90 days) Past Due (91-120 days) 
##                    363                    313                    304

The barchart below shows the loan fruquencies of each ‘LoanStatus’ category.

The table below summarizes the number of CurrentDelinquencies.

##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max.    NA's 
##  0.0000  0.0000  0.0000  0.5921  0.0000 83.0000     697

The histogram below shows the frequency of the ‘LoanDaysDelinquent’ variable.

The following cell displays the results of the summmary function producing a six
statistic table of the CreditScoreRangeLower and CreditScoreRangeUpper.

##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max.    NA's 
##     0.0   660.0   680.0   685.6   720.0   880.0     591
##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max.    NA's 
##    19.0   679.0   699.0   704.6   739.0   899.0     591

Added ‘CreditScoreMean’ column by calculating the mean of the difference between
‘CreditScoreRangeLower’ and ‘CreditScoreRangeUpper’. The followign plots shows
the mean of the added column CreditScoreMean in a dark red dashed verticle line.

##    Min. 1st Qu.  Median    Mean 3rd Qu.    Max.    NA's 
##    10.0   670.0   690.0   695.6   730.0   890.0     591
##     Mean 
## 695.5677

## [1] "Tue Mar  5 13:42:52 2019"










Univariate Analysis

What is the structure of your dataset?

The initial raw data set contained 113,937 (observations / rows), with 81
(variables / columns), on each loan, such as: loan amount, borrower rate
(or interest rate), current loan status, borrower income, borrower employment
status, borrower credit history, and the latest payment information, to name
a few. In the early stage of this analysis twenty seven rows were dropped
bringing the number of columns at this stage of the analysis to 54.

## [1] 113937     59

The cell below shows the structure of the cleaned data frame that was used in
the univatiate analysis.

## 'data.frame':    113937 obs. of  57 variables:
##  $ ListingCreationDate    : Factor w/ 113064 levels "2005-11-09 20:44:28.847000000",..: 14184 111894 6429 64760 85967 100310 72556 74019 97834 97834 ...
##  $ CreditGrade            : Factor w/ 9 levels "","A","AA","B",..: 5 1 8 1 1 1 1 1 1 1 ...
##  $ Term                   : int  36 36 36 36 36 60 36 36 36 36 ...
##  $ LoanStatus             : Factor w/ 12 levels "Cancelled","Chargedoff",..: 3 4 3 4 4 4 4 4 4 4 ...
##  $ ClosedDate             : Factor w/ 2803 levels "","2005-11-25 00:00:00",..: 1138 1 1263 1 1 1 1 1 1 1 ...
##  $ BorrowerAPR            : num  0.165 0.12 0.283 0.125 0.246 ...
##  $ BorrowerRate           : num  0.158 0.092 0.275 0.0974 0.2085 ...
##  $ RatingNumeric          : int  NA 6 NA 6 3 5 2 4 7 7 ...
##  $ RatingAlpha            : Factor w/ 8 levels "","A","AA","B",..: 1 2 1 2 6 4 7 5 3 3 ...
##  $ ProsperScore           : num  NA 7 NA 9 4 10 2 4 9 11 ...
##  $ LoanCategory           : int  0 2 0 16 2 1 1 2 7 7 ...
##  $ BorrowerState          : Factor w/ 52 levels "","AK","AL","AR",..: 7 7 12 12 25 34 18 6 16 16 ...
##  $ Occupation             : Factor w/ 68 levels "","Accountant/CPA",..: 37 43 37 52 21 43 50 29 24 24 ...
##  $ EmploymentStatus       : Factor w/ 9 levels "","Employed",..: 9 2 4 2 2 2 2 2 2 2 ...
##  $ EmploymentDuration     : int  2 44 NA 113 44 82 172 103 269 269 ...
##  $ HomeMortgage           : Factor w/ 2 levels "False","True": 2 1 1 2 2 2 1 1 2 2 ...
##  $ DateCreditPulled       : Factor w/ 112992 levels "2005-11-09 00:30:04.487000000",..: 14347 111883 6446 64724 85857 100382 72500 73937 97888 97888 ...
##  $ CreditScoreLower       : int  640 680 480 800 680 740 680 700 820 820 ...
##  $ CreditScoreUpper       : int  659 699 499 819 699 759 699 719 839 839 ...
##  $ FirstCreditLineDate    : Factor w/ 11586 levels "","1947-08-24 00:00:00",..: 8639 6617 8927 2247 9498 497 8265 7685 5543 5543 ...
##  $ CurrentCreditLines     : int  5 14 NA 5 19 21 10 6 17 17 ...
##  $ OpenCreditLines        : int  4 14 NA 5 19 17 7 6 16 16 ...
##  $ CreditLinesPast7yrs    : int  12 29 3 29 49 49 20 10 32 32 ...
##  $ RevolvingAccounts      : int  1 13 0 7 6 13 6 5 12 12 ...
##  $ RevolvingMonthlyPayment: num  24 389 0 115 220 1410 214 101 219 219 ...
##  $ InquiriesLast6Months   : int  3 3 0 0 1 0 0 3 1 1 ...
##  $ TotalInquiries         : num  3 5 1 1 9 2 0 16 6 6 ...
##  $ CurrentDelinquencies   : int  2 0 1 4 0 0 0 0 0 0 ...
##  $ AmountDelinquent       : num  472 0 NA 10056 0 ...
##  $ OverdueLast7Years      : int  4 0 0 14 0 0 0 0 0 0 ...
##  $ RevolvingCreditBalance : num  0 3989 NA 1444 6193 ...
##  $ BankcardUtilization    : num  0 0.21 NA 0.04 0.81 0.39 0.72 0.13 0.11 0.11 ...
##  $ AvailableBankcardCredit: num  1500 10266 NA 30754 695 ...
##  $ DebtToIncomeRatio      : num  0.17 0.18 0.06 0.15 0.26 0.36 0.27 0.24 0.25 0.25 ...
##  $ IncomeRange            : Factor w/ 8 levels "$0","$1-24,999",..: 4 5 7 4 3 3 4 4 4 4 ...
##  $ IncomeVerifiable       : Factor w/ 2 levels "False","True": 2 2 2 2 2 2 2 2 2 2 ...
##  $ StatedMonthlyIncome    : num  3083 6125 2083 2875 9583 ...
##  $ TotalProsperLoans      : int  NA NA NA NA 1 NA NA NA NA NA ...
##  $ OnTimeProsperPayments  : int  NA NA NA NA 11 NA NA NA NA NA ...
##  $ LatePayUnder30days     : int  NA NA NA NA 0 NA NA NA NA NA ...
##  $ LatePayOver30days      : int  NA NA NA NA 0 NA NA NA NA NA ...
##  $ LoanDaysDelinquent     : int  0 0 0 0 0 0 0 0 0 0 ...
##  $ InitialDefaultCycle    : int  NA NA NA NA NA NA NA NA NA NA ...
##  $ LoanDurationMonths     : int  78 0 86 16 6 3 11 10 3 3 ...
##  $ LoanNumber             : int  19141 134815 6466 77296 102670 123257 88353 90051 121268 121268 ...
##  $ LoanOriginalAmount     : int  9425 10000 3001 10000 15000 15000 3000 10000 10000 10000 ...
##  $ LoanOriginationDate    : Factor w/ 1873 levels "2005-11-15 00:00:00",..: 426 1866 260 1535 1757 1821 1649 1666 1813 1813 ...
##  $ LoanOriginationQuarter : Factor w/ 33 levels "Q1 2006","Q1 2007",..: 18 8 2 32 24 33 16 16 33 33 ...
##  $ MonthlyLoanPayment     : num  330 319 123 321 564 ...
##  $ PercentFunded          : num  1 1 1 1 1 1 1 1 1 1 ...
##  $ Recommendations        : int  0 0 0 0 0 0 0 0 0 0 ...
##  $ InvestorsFriendsCount  : int  0 0 0 0 0 0 0 0 0 0 ...
##  $ FriendsAmountInvested  : num  0 0 0 0 0 0 0 0 0 0 ...
##  $ Investors              : int  258 1 41 158 20 1 1 1 1 1 ...
##  $ IncomeRange_ordered    : Ord.factor w/ 8 levels "Not employed"<..: 5 6 2 5 8 8 5 5 5 5 ...
##  $ LoanCode               : Factor w/ 21 levels "Not Available",..: 1 3 1 17 3 2 2 3 8 8 ...
##  $ CreditScoreMean        : num  650 690 490 810 690 750 690 710 830 830 ...

What is/are the main feature(s) of interest in your dataset?

Features relating to the five C’s of Credit analysis: (capacity, capital,
conditions, character & collateral). Because most of the loans Prosper makes
are consolidation loans and not home loans varialbes representing colateral are
not present in this data.


  • LoanStatus [4] Condition
  • Term [3] Condition
  • LoanCategory [11] Condition
  • BorrowerState [12] Condition
  • Occupation [13] Capacity
  • EmploymentStatus [14] Capacity
  • EmploymentDuration [15] Capacity
  • HomeMortgage [16] Capacity
  • OverdueLast7Years [30] Character
  • DebtToIncomeRatio [34] Capacity
  • IncomeRange [35] Capacity
  • IncomeVerifiable [36] Character
  • StatedMonthlyIncome [37] Capacity
  • LoanOriginationDate [47] Condition
  • MonthlyLoanPayment [49] Capacity
  • CreditScoreMean [55] Character

What other features in the dataset do you think will help support your investigation into your feature(s) of interest?

Supporting features of interest

  • CreditScoreLower [18] Character
  • CreditScoreUpper [19] Character
  • TotalInquiries [27] Character
  • CurrentDelinquencies [28] Character
  • AmountDelinquent [29] Character
  • LoanOriginalAmount [46] Condition
  • InvestorsFriendsCount [52] Character
  • FriendsAmountInvested [49] Character
  • Investors [54] Capacity

Did you create any new variables from existing variables in the dataset?

  • Columns 26 & 27 (used to create the CreditScoreMean column ‘55’ in the
    uni_data so that the standard deviation of the CreditScoreMean could be
    calculated to enalbe analysis of the spread in CreditScoreMeans as they
    relate to the 5 C’s.

  • Added the ‘LoanCode’ column ’ changing the Loan Cateories from numerics
    vlues to string values in order to generate meaningful axis lables on the
    plots. This brought the total column count up to 56.

  • Added ‘OriginationQuarter’ & ‘OriginationYear; columns by extracting two strings from the ’LoanOriginationQarter’ column bringing the column count up to
    58 columns.

  • Added ‘IncomeRage_ordered’ to rearrange the vlaues in the ‘IncomeRange’
    column in ascending order for those columns that had monetary values bringing
    the column count up to 59.

Of the features you investigated, were there any unusual distributions?

The BorrowerAPR was very unusual in that, although there were over 113,000
different loans contained in this data set, there were 6677 different interest
rates each separated by a difference of just 0.00001 percent. It would be un-
realistic for a bank to be able to apply this many different rates to its pool
of borrowers. With out performing this exploratory analysis I wouldn’t have
stumbled upon this finding.

Did you perform any operations on the data to tidy, adjust, or change the form of the data? If so, why did you do this?

Columns Modified

  • Used the lubridate package year function to capature the date field that
    enabled plotting of the data in the “LoanOringinationDate” column.

  • This transformation was done to enable plotting of time data.

Ordered factor variables in the ‘IncomeRange’ column improving plot readability.

  • Reorderd the income factors to plot the income ranges in logical sequence.

Rotated the x_tic labels in three plots to improve the display of those labels’

  • EmplymentStatus

  • IncomeRange

  • LoanCode (replaced the LoanCategory column for plotting this data)

Columns dropped:

  • columns 1,2 (listing numbers aren“t” any of the 5 C’s of loan risk analysis (Capital,
    Capacity, Conditions, Character or Colateral)

  • cloumns 10:16, (these columns pertain to business efficiency and profitability but give
    little informatin on any of the 5 C’s of loan risk analysis)
  • columns 23:24 (insufficient information is available regarding these values)

  • columns 39:40 (relate to public records but we don’t know the significance here)
  • column 46 (not sure what kinds of Trades these are and how they relate to the 5 C’s)

  • column 52:58 (each column had roughly 90K NAs or missing data so only 10% of the
    observations provide information on this feature)

  • columns 59 & 61 (each columns has over 95K NAs, same as above)

  • columns 69:72 (columns relate to costs and profitability of Prosper’s business
    operations without giving information relevant to the 5 C’s.










Bivariate Plots Section

Rename (copy) uni_data to bi_data for further bivariate analysis

The data frame above was renamed to bi_data and will be used for the bivariate
section of analysis.

The following eleven plots use the ggpairs function to detect if a correlation
exists between the two variables in the plots.

## [1] "Mon Mar  4 00:30:04 2019"

## [1] "Mon Mar  4 00:30:13 2019"

## [1] "Mon Mar  4 00:30:23 2019"

## [1] "Mon Mar  4 00:30:27 2019"

## [1] "Mon Mar  4 00:30:31 2019"

## [1] "Mon Mar  4 00:30:35 2019"

## [1] "Mon Mar  4 00:30:45 2019"

## [1] "Mon Mar  4 00:30:54 2019"

## [1] "Mon Mar  4 00:31:03 2019"

## [1] "Mon Mar  4 00:31:13 2019"

## [1] "Mon Mar  4 00:31:21 2019"










Bivariate Analysis

Talk about some of the relationships you observed in this part of the investigation. How did the feature(s) of interest vary with other features in the dataset?

Bivariate Plot 1 analysis

BorrowerRate vs. CurrentDelinquencies were the two variables in the first
bivariate plot. The results show a correlation of 0.177 indicating a weak
correlation.

Bivariate Plot 2 analysis

LoanDurationMonths vs. CurrentDelinquencies were the two variables plotted in
the second bivariate plot producing a weak correlation coefficeint of 0.248.

Bivariate Plot 3 analysis

EmploymentStatus vs. CurrentDelinquecies were used in the third bivariate plot.
In this plot a correlation calculation was not returned with the plot because
the inputs are non numeric.

Bivariate Plot 4 analysis

IncomeVerfiable vs. CurrentDelinquencies were plotted in the fourth bivariate
plot. From this plot we can just see that IncomeVerifiable shows less variance. This is probably mainly becuase lenders are less likely to lend to borrowers
without a verifiable income. Therefore the lower numbers of loans generate a
lower variance.

Bivariate Plot 5 analysis

IncomeRange_ordered vs. CurrentDelinquencies were plotted in the 5th bivarate
plot. This plot visibly shows that the higher the income range the lower the
CurrentDelinquencies rate.

Bivariate Plot 6 analysis

OverdueLast7Year vs CurrentDelinquencies were the two variables plotted in the
sixth bivariate plot. A correlation coefficient was calculated since both of
these varaibles are numeric which turns out to be .378 indicating there is
significance in the relationship between these two variables. So would be
correct to say that the ‘OverdueLast7Years’ variable is related to the level of
‘CurrentDelinquencies’.

Bivariate Plot 7 analysis

CreditScoreMean vs. CurrentDelinquencies were the two varaibles plotted in the
seventh bivaraite plot. It turns out that, there is a significant negative
correlation between these two varaibles which was calculated to be -0.368.
In other words as the ‘CreditScoreMean’ increases, the ‘CurrentDelinquencies’
rate decreases. This explains why Credit Score is such a key component of loan
risk analysis when being used by lenders to evaluate whether or not to grant a
loan request.

Bivariate Plot 8 analysis

‘FriendsAmountInvested’ vs. ‘CurrentDelinquencies’ were the two varaibles plot-
ted in this bivaraite plot. The returned correlation cooefficient of 0.0153 is
not considered significant for this analysis.

Bivariate Plot 9 analysis

‘TotalInquiries’ vs. ‘Investors’ were the two variables used in this plot.
A correlation coefficient of 0.0263 was returned meaning little correlation is
present among these two varaibles.

Bivariate Plot 10 analysis

‘FreindsAmountInvested vs. ’DebtToIncomeRatio’ were the two varialbes used in
this bivariate plot. The result was a correlation coefficient of only 0.0279,
not an indication of a significant correlation between these two variables.

Bivariate Plot 11 analysis

‘CreditScoreLower’ vs. ‘LoanOriginationAmount’ were the two variables used in
this bivaraiate plot. A correlation coefficient of 0.341 was returned, meaning
the relationship between these two variables is at the lower end of the signifi-
cant level.

Bivariate Plot Analysis Summary

The three variables with the highest correlation coefficients were the ‘Overdue
Last7Years’ at 0.378, then ‘CreditScoreMean at -0.068, and finally ’CreditScore
Lower’ at 0.341. The variable with the next highest correlation was ‘Freinds
AmountInvested’. Analyzing these results we can conclude that a persons past
credit performance for the most part along with some influence from friends
support might provide many of the characteristics that lend to predicting future
loan outcomes.

Did you observe any interesting relationships between the other features (not the main feature(s) of interest)?

The bivariate plot of ‘CreditScoreLower’ vs. ‘LoanOriginalAmount’ calculates a
correlation coefficient of 0.341 which was one of the top three strongest
correlations discovered thus far.

What was the strongest relationship you found?

The strongest relationship btween two variables I found thus far was between
the ‘OverdueLast7Years’ vs. the ‘CurrentDelinquencies’ columns. the correlation
cooeficiennt was calculated to be 0.378.






Multivariate Plots Section

Renamed (copied bi_data set) to multi_data for further multivariate analysis

Eleven multivariate plots considering different relationships between three or
more variables will follow. Each of these variables were analyzed above to
determine what their relationship was with one other variable (a bivariate
analysis). I’ll be using colors, sizes and shapes to show how these additional
varaibles related with each of the first two variables. In the following plots
I’ll be looking at relationships between: CreditScoreMean, CurrentDelinquencies,
HomeMortgage, IncomeVerfiable, Term, LoanCode, DebtToIncomeRatio, BorrowerAPR,
IncomeRange_ordered, InvestorsFriendCount, FriendsAmountInvested & Occupation.
***

Multivariate_Plot_a, compares ‘CurrentDelinquencies’ along the x axis with
CreditScoreMean’ along the y axis. The value of the HomeMortgage which can
either be true or false is coded in color. In this plot I am looking to see
if having a HomeMortgage is related to CurrentDelinquencies and CreditScoreMean.
Becuase all of the red points fall mainly lower and farther to the right
borrowers with home mortgages tend to have better CreditScoreMeans and lower
variance in the number of loan payment delinquencies.

Multivariate_Plot_b, compares CreditScoreMean’ along the x axis with
‘CurrentDelinquencies’ along the y axis. In this plot however, we want to know if
having a verified income with the lender is related to delinquent loan payments
and or the borrower’s credit score mean. The low percentage of red points
compared to green points indicates very few loans are made to borrowers without
a verfied income. For those loans that have been made to borrowers without a
verified income the data suggests that few loans made to this group have the
lowest level of payment delinquencies. Very few of the red points lie along the
x axis compared with the green points.

Multivariate_Plot_c, compares’Term’ along the x axis with
‘CurrentDelinquencies’ along the y axis. It looks as though from this plot, that nearly all loans
with a 60 month term are going to borrowers with a home mortgage and the
delinquency rate among those loans is relatively low. On the other hand, loans
with a 12 month term appear to be almost evenly disributed among the borrowers
who have a home mortgage and borrowers who don’t have a home mortgage.
However, the most prevalent loan term (the 36 month term) data suggests
that payment delinquencies by non mortgage holders is far greater than the
number of payment delinquencies by the borrowers who have a home mortgage.
Moreover the frequency of current delinquencies (red points) is more prevalent
in the 36 month term category as can be seen in the higher relatvie number of
red points to green points.

Multivariate_Plot_d, compares ‘CurrentDelinquencies’ along the x axis with
‘LoanCode’ along the y axis. I’ve added ‘IncomeRange_ordered’ using color
visualizing the relationship of ‘IncomeRange_ordered’ with loan purpose listed as
‘LoanCode’ and current payment delinquencies listed as ‘CurrentDelinquencies’.
The conlusion I draw from this plot is that current payment delinquencies are
fairly evenly distributed across each of the income groupings. Other than that,
there are a few categories of loans that have fewer payment delinquencies that
most of the others, such as: “Green Loans”, “Boat Loans”, however this is most
likely due to fewer numbers of these loans being made.

Multivariate_Plot_e, compares’DebtToIncomeRatio’ along the x axis with
‘CurrentDelinquencies’ along the y axis. Using ‘IncomeRange_ordered’ with color
to stratify the current payment delinquencies by income group. An initial
observation is this lender is reluctant to approve loans above a DTI of greater
than roughly 35%, although there are some loans made over that level. It
appears that the number of current delinquencies is fairly evenly distributed
among the various income range groupings.

Multivariate_Plot_f, compares ‘BorrowerAPR’ along the x axis with
‘CurrentDelinquencies’ along the y axis. The plot indicates that the distribution of
current delinquencies is normally distributed among the 36 month loan term
shown in greed. It is less obvious what the distribution is for the 12, and 60
month loan terms.

Multivariate_Plot_g, compares ‘BorrowerAPR’ along the x axis with
‘DebtToIncomeRatio’ along the y axis. From this plot we can confirm that the
mean ‘BorrowerARR’ is roughly .22 and that the mean DTI is roughly .28. We can
also see that the distribution of each varaible potted against the other is
normally shaped. Finally, the distribution with regard to the ‘Term’ appears to
be nearly identical for each of the three term lengths.

Multivariate_Plot_h, compares ‘CurrentDelinquencies’ along the x axis with
‘IncomeRange_ordered’ along the y axis using color for the ‘Term’ variable.
This plot shows that the number of current delinquencies is fairly evenly
distributed between the upper four income ranges. Taking a second look at the
summary for the ‘IncomeRange_ordered’ varaible we see that only 621 loans were
made to borrowers in the lowest income category and that only 7274 loans out of
more than 110,000 loans were made to borrowers in the $1-24,999 income range
which is about 0.06 percent of total loans.

Multivariate_Plot_i, compares ‘CurrentDelinquencies’ along the x axis with
‘FriendsAmountInvested’ along the y axis using color with the’CreditScoreMean’
variable. As’FreindsAmountInvested. increases,‘CurrentDelinquencies’ decrease.
This is perhaps one of the fundamental pricipals in how peer funding works. By
having peers involved in the loan process the on time re payments increase.

Multivariate_Plot_j, compares ‘CreditScoreMean’ along the x axis with
‘FriendsAmountInvested’ along the y axis using color for the ‘FreindsAmountInvested’
variable. The frequency in ‘FreindsAmountInvested’ values appear to show no
difference in whether or not the borrower has a home mortgage or not.

Multivariate_Plot_k, compares ‘CurrentDelinquencies’ along the x axis with
‘Occupation’ along the y axis using color for the ‘HomeMortgage’ variable.
From this plot we can visually see that the borrowers without a home mortgage
appear to have a greater frequency of current delinquencies compared to the
borrowers who have a home mortgage. This is evidenced by the green points
coalescing on the left along the y axis and the red points gravitating toward
the right side along the y axis.





Linear Models

## 
## Calls:
## f1: lm(formula = CurrentDelinquencies ~ CreditScoreMean, data = multi_data_samp_f)
## f2: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage, 
##     data = multi_data_samp_f)
## f3: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio, data = multi_data_samp_f)
## f4: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR, data = multi_data_samp_f)
## f5: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus, data = multi_data_samp_f)
## f6: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration, 
##     data = multi_data_samp_f)
## f7: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration + 
##     IncomeRange, data = multi_data_samp_f)
## f8: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration + 
##     IncomeRange + Term, data = multi_data_samp_f)
## f9: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration + 
##     IncomeRange + Term + BorrowerState, data = multi_data_samp_f)
## f10: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration + 
##     IncomeRange + Term + BorrowerState + Occupation, data = multi_data_samp_f)
## f11: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration + 
##     IncomeRange + Term + BorrowerState + Occupation + LoanOriginationDate, 
##     data = multi_data_samp_f)
## f12: lm(formula = CurrentDelinquencies ~ CreditScoreMean + HomeMortgage + 
##     DebtToIncomeRatio + BorrowerAPR + EmploymentStatus + EmploymentDuration + 
##     IncomeRange + Term + BorrowerState + Occupation + LoanOriginationDate + 
##     IncomeVerifiable, data = multi_data_samp_f)
## 
## ==========================================================================================================================================================================================
##                                                      f1           f2           f3           f4         f5         f6         f7         f8         f9         f10       f11       f12     
## ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
##   (Intercept)                                       6.852***     6.983***     7.934***     6.224**     3.023      2.963      3.750      4.141      5.104      0.500      3.905     3.905  
##                                                    (1.503)      (1.565)      (1.597)      (2.041)     (2.335)    (2.343)    (2.482)    (2.539)    (2.886)    (4.270)                      
##   CreditScoreMean                                  -0.009***    -0.009***    -0.011***    -0.009**    -0.006     -0.006     -0.006     -0.006     -0.006     -0.003     -0.002    -0.002  
##                                                    (0.002)      (0.002)      (0.002)      (0.003)     (0.003)    (0.003)    (0.003)    (0.003)    (0.003)    (0.005)                      
##   HomeMortgage: True/False                                       0.087        0.316        0.281       0.360      0.323      0.481      0.476      0.424      0.406      1.111     1.111  
##                                                                 (0.281)      (0.290)      (0.290)     (0.285)    (0.293)    (0.302)    (0.302)    (0.367)    (0.501)                      
##   DebtToIncomeRatio                                                          -0.152       -0.145      -0.169     -0.164     -0.250     -0.241     -0.145     -0.238     -2.379    -2.379  
##                                                                              (0.159)      (0.159)     (0.156)    (0.157)    (0.166)    (0.167)    (0.231)    (0.297)                      
##   BorrowerAPR                                                                              2.512       5.295*     5.360*     4.784*     4.849*     3.349      4.920      3.930     3.930  
##                                                                                           (1.875)     (2.081)    (2.090)    (2.143)    (2.148)    (2.596)    (3.603)                      
##   EmploymentStatus: Full-time/Employed                                                                 0.695*     0.728*     0.675*     0.585      0.302      0.612     -1.243    -1.243  
##                                                                                                       (0.326)    (0.332)    (0.338)    (0.359)    (0.427)    (0.555)                      
##   EmploymentStatus: Other/Employed                                                                     1.029      1.028      0.809      0.786      0.636      1.136      1.048     1.048  
##                                                                                                       (0.597)    (0.599)    (0.631)    (0.633)    (0.709)    (1.001)                      
##   EmploymentStatus: Part-time/Employed                                                                -0.765     -0.717     -1.436     -1.475     -0.878     -0.409     -4.974    -4.974  
##                                                                                                       (1.099)    (1.105)    (1.207)    (1.210)    (1.392)    (1.836)                      
##   EmploymentStatus: Retired/Employed                                                                   3.444*     3.516*     3.320*     3.246      2.558      2.979      4.542     4.542  
##                                                                                                       (1.631)    (1.640)    (1.643)    (1.649)    (1.819)    (2.132)                      
##   EmploymentStatus: Self-employed/Employed                                                             1.472      1.540      1.341      1.265      1.444      1.946      1.131     1.131  
##                                                                                                       (0.786)    (0.798)    (0.817)    (0.824)    (0.915)    (1.187)                      
##   EmploymentDuration                                                                                              0.001      0.001      0.001      0.002      0.002     -0.007    -0.007  
##                                                                                                                  (0.001)    (0.001)    (0.001)    (0.002)    (0.002)                      
##   IncomeRange: $100,000+/$1-24,999                                                                                          -0.927     -0.904     -0.675     -1.012      1.455     1.455  
##                                                                                                                             (0.672)    (0.674)    (0.777)    (1.075)                      
##   IncomeRange: $25,000-49,999/$1-24,999                                                                                     -0.547     -0.497     -0.270     -0.131     -2.575    -2.575  
##                                                                                                                             (0.615)    (0.619)    (0.692)    (0.874)                      
##   IncomeRange: $50,000-74,999/$1-24,999                                                                                     -0.957     -0.885     -0.593     -1.021      0.554     0.554  
##                                                                                                                             (0.601)    (0.609)    (0.684)    (0.907)                      
##   IncomeRange: $75,000-99,999/$1-24,999                                                                                     -1.249     -1.148     -0.698     -1.155     -4.421    -4.421  
##                                                                                                                             (0.670)    (0.684)    (0.809)    (1.172)                      
##   Term                                                                                                                                 -0.010     -0.018      0.004     -0.010    -0.010  
##                                                                                                                                        (0.013)    (0.015)    (0.023)                      
##   BorrowerState: AZ                                                                                                                                3.299*     4.097*     9.564     9.564  
##                                                                                                                                                   (1.335)    (1.639)                      
##   BorrowerState: CA                                                                                                                               -0.429     -0.556     -2.044    -2.044  
##                                                                                                                                                   (0.977)    (1.250)                      
##   BorrowerState: CT                                                                                                                               -0.263     -0.223     -2.282    -2.282  
##                                                                                                                                                   (1.392)    (1.608)                      
##   BorrowerState: DE                                                                                                                               -1.384     -1.756      5.635     5.635  
##                                                                                                                                                   (1.750)    (2.347)                      
##   BorrowerState: FL                                                                                                                               -1.019     -1.380      2.050     2.050  
##                                                                                                                                                   (0.961)    (1.167)                      
##   BorrowerState: GA                                                                                                                                0.538      0.690      0.878     0.878  
##                                                                                                                                                   (0.928)    (1.173)                      
##   BorrowerState: IA                                                                                                                               -0.566      0.748     -1.444    -1.444  
##                                                                                                                                                   (1.726)    (2.856)                      
##   BorrowerState: ID                                                                                                                               -1.564     -0.568      2.153     2.153  
##                                                                                                                                                   (1.756)    (2.385)                      
##   BorrowerState: IL                                                                                                                               -1.248     -1.459      2.340     2.340  
##                                                                                                                                                   (0.917)    (1.157)                      
##   BorrowerState: IN                                                                                                                               -0.851     -0.908      2.975     2.975  
##                                                                                                                                                   (1.096)    (1.306)                      
##   BorrowerState: KS                                                                                                                               -0.146     -0.304     -2.384    -2.384  
##                                                                                                                                                   (1.200)    (1.445)                      
##   BorrowerState: MA                                                                                                                               -0.248      0.300      5.339     5.339  
##                                                                                                                                                   (1.294)    (1.604)                      
##   BorrowerState: MD                                                                                                                               -0.488     -0.082      2.746     2.746  
##                                                                                                                                                   (1.339)    (1.740)                      
##   BorrowerState: MI                                                                                                                               -0.918     -0.874     -1.265    -1.265  
##                                                                                                                                                   (1.036)    (1.238)                      
##   BorrowerState: MN                                                                                                                               -0.488     -1.176     -2.159    -2.159  
##                                                                                                                                                   (1.036)    (1.335)                      
##   BorrowerState: MO                                                                                                                               -0.762     -0.052     -2.999    -2.999  
##                                                                                                                                                   (1.065)    (1.286)                      
##   BorrowerState: MS                                                                                                                               -0.892     -1.501      2.432     2.432  
##                                                                                                                                                   (1.069)    (1.247)                      
##   BorrowerState: NC                                                                                                                                1.076      1.602     -2.228    -2.228  
##                                                                                                                                                   (1.050)    (1.362)                      
##   BorrowerState: NH                                                                                                                               -0.938     -2.577     -0.402    -0.402  
##                                                                                                                                                   (1.408)    (1.837)                      
##   BorrowerState: NJ                                                                                                                               -0.320     -0.282     -2.195    -2.195  
##                                                                                                                                                   (1.094)    (1.369)                      
##   BorrowerState: NV                                                                                                                                0.878      0.107     -2.546    -2.546  
##                                                                                                                                                   (1.462)    (1.681)                      
##   BorrowerState: NY                                                                                                                               -0.962     -1.075     -0.456    -0.456  
##                                                                                                                                                   (0.964)    (1.212)                      
##   BorrowerState: OH                                                                                                                               -0.905     -0.947     -1.945    -1.945  
##                                                                                                                                                   (1.117)    (1.475)                      
##   BorrowerState: OK                                                                                                                               -1.031     -0.561     -2.608    -2.608  
##                                                                                                                                                   (1.774)    (2.588)                      
##   BorrowerState: OR                                                                                                                               -0.988     -0.531     -2.426    -2.426  
##                                                                                                                                                   (1.769)    (2.077)                      
##   BorrowerState: PA                                                                                                                               -0.272     -0.126     -1.379    -1.379  
##                                                                                                                                                   (1.091)    (1.417)                      
##   BorrowerState: RI                                                                                                                               -0.543     -0.675     -1.720    -1.720  
##                                                                                                                                                   (1.526)    (1.910)                      
##   BorrowerState: SC                                                                                                                               -1.560     -1.778      0.332     0.332  
##                                                                                                                                                   (1.195)    (1.428)                      
##   BorrowerState: TN                                                                                                                               -1.553     -1.956      3.838     3.838  
##                                                                                                                                                   (1.382)    (1.619)                      
##   BorrowerState: TX                                                                                                                               -1.019     -0.312     -4.225    -4.225  
##                                                                                                                                                   (1.133)    (1.423)                      
##   BorrowerState: UT                                                                                                                               -0.107      0.116     -3.605    -3.605  
##                                                                                                                                                   (1.835)    (2.178)                      
##   BorrowerState: VA                                                                                                                               -0.946     -0.687     -2.196    -2.196  
##                                                                                                                                                   (1.144)    (1.498)                      
##   BorrowerState: WA                                                                                                                               -0.878     -0.153     -2.513    -2.513  
##                                                                                                                                                   (1.759)    (2.459)                      
##   BorrowerState: WI                                                                                                                               -0.999     -1.115     -1.289    -1.289  
##                                                                                                                                                   (1.035)    (1.234)                      
##   BorrowerState: WV                                                                                                                               -1.098     -0.766     -8.660    -8.660  
##                                                                                                                                                   (1.743)    (2.175)                      
##   Occupation: Accountant/CPA                                                                                                                                  2.202     -5.351    -5.351  
##                                                                                                                                                              (2.029)                      
##   Occupation: Administrative Assistant                                                                                                                        2.658     -2.720    -2.720  
##                                                                                                                                                              (1.764)                      
##   Occupation: Analyst                                                                                                                                         2.136     -4.407    -4.407  
##                                                                                                                                                              (1.988)                      
##   Occupation: Architect                                                                                                                                       1.576     -3.253    -3.253  
##                                                                                                                                                              (2.520)                      
##   Occupation: Attorney                                                                                                                                        1.321     -2.576    -2.576  
##                                                                                                                                                              (2.134)                      
##   Occupation: Car Dealer                                                                                                                                      2.637     -1.139    -1.139  
##                                                                                                                                                              (2.545)                      
##   Occupation: Chemist                                                                                                                                         1.767     -0.513    -0.513  
##                                                                                                                                                              (2.590)                      
##   Occupation: Clerical                                                                                                                                        3.214     -2.025    -2.025  
##                                                                                                                                                              (1.816)                      
##   Occupation: Computer Programmer                                                                                                                             1.199      2.066     2.066  
##                                                                                                                                                              (2.023)                      
##   Occupation: Construction                                                                                                                                   -1.154      3.490     3.490  
##                                                                                                                                                              (2.046)                      
##   Occupation: Doctor                                                                                                                                          2.624     -2.144    -2.144  
##                                                                                                                                                              (2.495)                      
##   Occupation: Engineer - Chemical                                                                                                                             0.578     -0.933    -0.933  
##                                                                                                                                                              (2.554)                      
##   Occupation: Engineer - Electrical                                                                                                                           3.392     -3.757    -3.757  
##                                                                                                                                                              (2.787)                      
##   Occupation: Executive                                                                                                                                       1.339     -0.495    -0.495  
##                                                                                                                                                              (1.821)                      
##   Occupation: Food Service                                                                                                                                    1.423     -0.754    -0.754  
##                                                                                                                                                              (2.198)                      
##   Occupation: Food Service Management                                                                                                                         2.576      0.378     0.378  
##                                                                                                                                                              (2.029)                      
##   Occupation: Laborer                                                                                                                                         0.258      1.444     1.444  
##                                                                                                                                                              (2.159)                      
##   Occupation: Military Enlisted                                                                                                                               1.666      0.182     0.182  
##                                                                                                                                                              (2.574)                      
##   Occupation: Nurse (LPN)                                                                                                                                    -0.788     -0.082    -0.082  
##                                                                                                                                                              (2.397)                      
##   Occupation: Nurse (RN)                                                                                                                                      1.894      4.383     4.383  
##                                                                                                                                                              (1.921)                      
##   Occupation: Nurse's Aide                                                                                                                                    0.148      2.865     2.865  
##                                                                                                                                                              (2.140)                      
##   Occupation: Other                                                                                                                                           1.716     -0.231    -0.231  
##                                                                                                                                                              (1.550)                      
##   Occupation: Police Officer/Correction Officer                                                                                                               2.253      3.590     3.590  
##                                                                                                                                                              (2.076)                      
##   Occupation: Professional                                                                                                                                    2.583     -1.119    -1.119  
##                                                                                                                                                              (1.731)                      
##   Occupation: Professor                                                                                                                                       1.525      0.427     0.427  
##                                                                                                                                                              (2.247)                      
##   Occupation: Retail Management                                                                                                                               1.103     -2.043    -2.043  
##                                                                                                                                                              (2.590)                      
##   Occupation: Sales - Commission                                                                                                                              1.449     -2.057    -2.057  
##                                                                                                                                                              (2.071)                      
##   Occupation: Sales - Retail                                                                                                                                  1.582     -1.181    -1.181  
##                                                                                                                                                              (1.887)                      
##   Occupation: Scientist                                                                                                                                       2.109      0.146     0.146  
##                                                                                                                                                              (2.576)                      
##   Occupation: Skilled Labor                                                                                                                                   1.573     -1.937    -1.937  
##                                                                                                                                                              (1.853)                      
##   Occupation: Social Worker                                                                                                                                   1.237     -1.528    -1.528  
##                                                                                                                                                              (2.543)                      
##   Occupation: Teacher                                                                                                                                         2.255      0.635     0.635  
##                                                                                                                                                              (1.834)                      
##   Occupation: Tradesman - Mechanic                                                                                                                            1.966     -0.759    -0.759  
##                                                                                                                                                              (2.431)                      
##   Occupation: Truck Driver                                                                                                                                    2.081     -2.861    -2.861  
##                                                                                                                                                              (2.437)                      
##   LoanOriginationDate2007-03-07 00 x 00 x 00                                                                                                                             4.828     4.828  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-03-09 00 x 00 x 00                                                                                                                             3.327     3.327  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-03-27 00 x 00 x 00                                                                                                                             0.881     0.881  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-04-24 00 x 00 x 00                                                                                                                             4.413     4.413  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-05-08 00 x 00 x 00                                                                                                                             5.385     5.385  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-05-15 00 x 00 x 00                                                                                                                             4.514     4.514  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-05-31 00 x 00 x 00                                                                                                                            23.737    23.737  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-07-06 00 x 00 x 00                                                                                                                            -0.536    -0.536  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-07-11 00 x 00 x 00                                                                                                                            -4.505    -4.505  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-07-17 00 x 00 x 00                                                                                                                             5.573     5.573  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-08-16 00 x 00 x 00                                                                                                                             0.943     0.943  
##                                                                                                                                                                                           
##   LoanOriginationDate2007-12-18 00 x 00 x 00                                                                                                                             1.747     1.747  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-01-15 00 x 00 x 00                                                                                                                             3.720     3.720  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-01-24 00 x 00 x 00                                                                                                                             8.198     8.198  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-03-04 00 x 00 x 00                                                                                                                             0.612     0.612  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-03-20 00 x 00 x 00                                                                                                                            -7.020    -7.020  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-03-28 00 x 00 x 00                                                                                                                             3.309     3.309  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-05-27 00 x 00 x 00                                                                                                                             0.991     0.991  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-06-03 00 x 00 x 00                                                                                                                             5.473     5.473  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-06-10 00 x 00 x 00                                                                                                                            -2.577    -2.577  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-07-03 00 x 00 x 00                                                                                                                             5.252     5.252  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-07-22 00 x 00 x 00                                                                                                                            -1.558    -1.558  
##                                                                                                                                                                                           
##   LoanOriginationDate2008-08-11 00 x 00 x 00                                                                                                                             6.071     6.071  
##                                                                                                                                                                                           
##   LoanOriginationDate2009-08-13 00 x 00 x 00                                                                                                                            -2.851    -2.851  
##                                                                                                                                                                                           
##   LoanOriginationDate2009-11-06 00 x 00 x 00                                                                                                                             0.588     0.588  
##                                                                                                                                                                                           
##   LoanOriginationDate2010-02-17 00 x 00 x 00                                                                                                                            -1.660    -1.660  
##                                                                                                                                                                                           
##   LoanOriginationDate2010-02-26 00 x 00 x 00                                                                                                                             0.436     0.436  
##                                                                                                                                                                                           
##   LoanOriginationDate2010-08-20 00 x 00 x 00                                                                                                                             5.345     5.345  
##                                                                                                                                                                                           
##   LoanOriginationDate2010-09-28 00 x 00 x 00                                                                                                                             5.413     5.413  
##                                                                                                                                                                                           
##   LoanOriginationDate2010-11-24 00 x 00 x 00                                                                                                                             5.528     5.528  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-01-03 00 x 00 x 00                                                                                                                            -5.208    -5.208  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-03-02 00 x 00 x 00                                                                                                                            -8.147    -8.147  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-05-27 00 x 00 x 00                                                                                                                             0.424     0.424  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-06-08 00 x 00 x 00                                                                                                                            -2.675    -2.675  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-06-30 00 x 00 x 00                                                                                                                            -1.282    -1.282  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-08-04 00 x 00 x 00                                                                                                                            -0.378    -0.378  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-08-31 00 x 00 x 00                                                                                                                            10.966    10.966  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-10-12 00 x 00 x 00                                                                                                                            -1.318    -1.318  
##                                                                                                                                                                                           
##   LoanOriginationDate2011-12-29 00 x 00 x 00                                                                                                                            -0.071    -0.071  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-05-16 00 x 00 x 00                                                                                                                             4.102     4.102  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-06-27 00 x 00 x 00                                                                                                                             0.717     0.717  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-07-11 00 x 00 x 00                                                                                                                            -1.872    -1.872  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-07-24 00 x 00 x 00                                                                                                                             1.406     1.406  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-08-07 00 x 00 x 00                                                                                                                            -5.483    -5.483  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-08-08 00 x 00 x 00                                                                                                                             1.624     1.624  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-08-28 00 x 00 x 00                                                                                                                           -17.178   -17.178  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-09-12 00 x 00 x 00                                                                                                                            -1.884    -1.884  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-09-19 00 x 00 x 00                                                                                                                             0.472     0.472  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-09-24 00 x 00 x 00                                                                                                                            -4.669    -4.669  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-09-27 00 x 00 x 00                                                                                                                             4.861     4.861  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-11-30 00 x 00 x 00                                                                                                                             5.741     5.741  
##                                                                                                                                                                                           
##   LoanOriginationDate2012-12-07 00 x 00 x 00                                                                                                                            10.430    10.430  
##                                                                                                                                                                                           
##   LoanOriginationDate2013-01-25 00 x 00 x 00                                                                                                                            -0.055    -0.055  
##                                                                                                                                                                                           
##   LoanOriginationDate2013-02-25 00 x 00 x 00                                                                                                                             6.763     6.763  
##                                                                                                                                                                                           
##   LoanOriginationDate2013-05-30 00 x 00 x 00                                                                                                                           -10.563   -10.563  
##                                                                                                                                                                                           
##   LoanOriginationDate2013-07-09 00 x 00 x 00                                                                                                                            -4.739    -4.739  
##                                                                                                                                                                                           
##   LoanOriginationDate2013-07-10 00 x 00 x 00                                                                                                                             8.620     8.620  
##                                                                                                                                                                                           
## ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
##   R-squared                                         0.102        0.102        0.133        0.144       0.217      0.219      0.248      0.251      0.456      0.601      1.000     1.000  
##   adj. R-squared                                    0.096        0.090        0.114        0.119       0.164      0.159      0.165      0.162      0.158      0.013                       
##   sigma                                             1.578        1.582        1.556        1.552       1.512      1.516      1.511      1.514      1.517      1.643                       
##   F                                                17.102        8.548        7.042        5.761       4.066      3.672      2.985      2.815      1.528      1.022                       
##   p                                                 0.000        0.000        0.000        0.000       0.000      0.000      0.001      0.001      0.040      0.471                       
##   Log-likelihood                                 -285.835     -285.787     -262.274     -261.350    -255.014   -254.844   -252.188   -251.865   -229.104   -207.175    Inf       Inf      
##   Deviance                                        375.767      375.528      334.268      329.948     301.779    301.057    290.005    288.687    209.508    153.839      0.000     0.000  
##   AIC                                             577.670      579.573      534.547      534.700     532.028    533.687    536.377    537.730    562.208    586.350   -Inf      -Inf      
##   BIC                                             586.762      591.695      549.326      552.435     564.542    569.157    583.670    587.979    715.911    840.551   -Inf      -Inf      
##   N                                               153          153          142          142         142        142        142        142        142        142        142       142      
## ==========================================================================================================================================================================================
## Warning in rm(p): object 'p' not found










Multivariate Analysis

Talk about some of the relationships you observed in this part of the investigation. Were there features that strengthened each other in terms of looking at your feature(s) of interest?

Through this analysis I’ve discovered that the ‘CreditScoreMean’ and ‘CurrentDelinquencies’ are inversely related.

Were there any interesting or surprising interactions between features?

Through the analysis I’ve also dsicovered that on average borrowers who have a ‘HomeMortgage’ have fewer “CurrentDelinquencies’.

Through this analysis I also discivered that the higher the Borrower’s ‘DebtToIncomeRatio’ value, the higher the “BorrowerAPR’ / annual effective interest rate.

OPTIONAL: Did you create any models with your dataset? Discuss the strengths and limitations of your model.

The linear model I created attained an R-squared result of 1.00 which I think is about maximum possible. So perhaps this is a good model.











Final Plots and Summary






Plot One

Description One

Final Plot 1 shows the relationship between the dependent or response variable
‘CurrentDelinquencies’ and the independent variable ’CreditScoreMean which was
divided into six levels with the cut function. A regresssion line was plotted
through the pints to show that the two variables are inversely related

Plot Two

Description Two

Final Plot 2 shows the relationship between the dependent variable
‘CurrentDelinquencies’ which was plotted on the x axis instead of the y axis
for ease of labeling of the tick labels. Color was added to this plot to show
the interrelationship of the ‘CreditScoreMean’ variable. This plot clearly
shows that the lower credit scores have the greatest number of payment
delinquencies.

Plot Three

Description Three

Final Plot three shows the relationship between ‘LoanCode’ which are the loan
categories on the y axis and ‘CurrentDelinquencies’ on the x axis. The
‘CreditScoreMean’ variable was cut into seven groupings and used interacively
in this plot. This plot demonstrates the majore significance of the
‘CreditScoreMean’ or most credit rating systems in general. Here we can see that
very few delinquencies show up for the lowest credit scores irregardless of
laon purpose. This is most likey because lenders are not lending that much to
borrowers with very low credit scores. On the other hand we can also see that
the borrowers with the highest credit scores tend to have the fewest number
of delinquent payments irregardles of the purpose of the loans. We can also
see that certain categories of loans are not as prevalent like boat loans and
RV loans for example. example. variabe










Reflection

Conclusions:

This was a challenging project in a number of ways. First of all, the data set was
rather large in both the number of rows and columns. I found that one of the greatest
challenges for me was to get the coding right for making the plots. Once I could
accomplish that task I began to see the shortcomings in the data and had to start
making adjustments and modifications to get the plots to work. I think learning to
utilize the ggplot2 package and a number of other packages made the task go much
quicker than it otherwise would have without them. I thought it was very interesting
how the R-squared value of the model I created attained a 1.00 result which indicates
that the model predicts very well. If I did future work in this project I would
experiment with other types of graphs.

References:

## R version 3.5.2 (2018-12-20)
## Platform: x86_64-apple-darwin15.6.0 (64-bit)
## Running under: macOS Mojave 10.14.3
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## Matrix products: default
## BLAS: /Library/Frameworks/R.framework/Versions/3.5/Resources/lib/libRblas.0.dylib
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## attached base packages:
## [1] stats     graphics  grDevices utils     datasets  methods   base     
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## other attached packages:
## [1] dplyr_0.8.0.1 plyr_1.8.4    stringr_1.4.0 ggpubr_0.2    magrittr_1.5 
## [6] ggplot2_3.1.0
## 
## loaded via a namespace (and not attached):
##  [1] Rcpp_1.0.0       knitr_1.21       tidyselect_0.2.5 munsell_0.5.0   
##  [5] colorspace_1.4-0 R6_2.4.0         rlang_0.3.1      tools_3.5.2     
##  [9] grid_3.5.2       gtable_0.2.0     xfun_0.5         withr_2.1.2     
## [13] htmltools_0.3.6  assertthat_0.2.0 yaml_2.2.0       lazyeval_0.2.1  
## [17] digest_0.6.18    tibble_2.0.1     crayon_1.3.4     purrr_0.3.1     
## [21] glue_1.3.0       evaluate_0.13    rmarkdown_1.11   labeling_0.3    
## [25] stringi_1.3.1    compiler_3.5.2   pillar_1.3.1     scales_1.0.0    
## [29] pkgconfig_2.0.2
## [1] "Wed Mar  6 23:19:47 2019"